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Seasonal Affective Disorder And The Pricing Of Ipos, Steven D. Dolvin, Mark K. Pyles
Seasonal Affective Disorder And The Pricing Of Ipos, Steven D. Dolvin, Mark K. Pyles
Scholarship and Professional Work - Business
Purpose - It has been found that stock market returns vary seasonally with the amount of daylight, and they attribute this effect to seasonal affective disorder (SAD), which is a psychological condition that causes depression and heightened risk aversion during the fall and winter months. The goal of this study is to examine whether this effect also manifests itself in the pricing of initial public offerings (IPOs).
Design/methodology/approach - The authors conduct an empirical analysis on IPO data
collected over the period 1986-2000. Specifically, we examine potential pricing differences between IPO that go public during the fall and winter months, …